NTS Exit Reform

A series of Modification proposals were discussed within the industry in order to introduce changes to the current Exit Capacity Regime. The Exit Reform changes have been approved via UNC Modification 0195AV which seek to introduce the Long Term, Medium Term and Short Term sale of NTS Exit Flat capacity through Application and Auction based mechanisms. The primary business drivers for the Enduring Offtake arrangements are to provide market signals for NTS investment and also to facilitate fair competition.

The current transitional NTS Offtake arrangements allow Users to procure NTS Exit Capacity for use up to and inclusive of 30th September 2012. Ofgem requires reform to the current arrangements in time to enable Users to apply for an increase or decrease to their Enduring NTS Exit Flat Capacity Rights and to make NTS Exit Flat Capacity Bookings effective from no earlier than 1st October 2012. The NTS Exit Flat Capacity application request process will be first conducted in the Gemini NTS Exit Reform system in July 2010 with allocated capacity to be effective from 1st October 2012.

In order to deliver the requirements of Modification 0195AV, a three phase delivery approach has been adopted. The following gives a high level overview of the Phase deliverables, current status and Implementation dates:

Phase 1 - Project Stage: User Acceptance Testing / Implementation Planning / User Trials

Enduring and Annual Application Processes, Adhoc Applications and Reduction of User Enduring Capacity rights.

Implementation date: 23rd May 2010

Phase 2 - Project Stage: Detailed Design

Transfer and Assignment of Capacity rights to other Users, National Grid Forwards & Options Buyback Contracts and Advanced Reservation Capacity Agreements functionality.

Implementation date: April 2011 - exact date to be confirmed

Phase 3 - Project Stage: Awaiting Start

Daily Flat Capacity, Constraint Management and Invoicing of NTS Exit Flat Capacity.

Implementation date: August / September 2012

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